So it may seem unreal, but this company named Tactus has made these new touch screens that basically pop-out any shape from your screen. Making your touch screen phone have physical yet still touch keypads/keyboards etc.MaximumPC.com wroteAccording to the white paper Tactus reps sent us, the multi-layered Tactus display technology sits on top of a device's touch sensors and has "micro channels" comprised of multiple tiny holes in predetermined locations; when physical buttons are needed, an optically clear fluid rises up from a lower layer of the Tactus sheet to fill the holes and create the on-demand physical interface. When physical buttons aren't needed, the fluid exits and the display flattens back out, as you can see in the video below.
http://www.youtube.com/watch?feature=player_embedded&v=37ROcvZMsQo
Just watch the video and you'll be amazed !